What is Australia's minimum wage?
Australia's national minimum wage is the legal minimum pay that most employees are entitled to receive. From 1 July 2026, Fair Work set it at $26.44 per hour, which works out to $1,004.90 per week or about $52,255 per year on a standard 38-hour week. This figure is a floor: employers cannot pay less, though many awards and enterprise agreements provide higher rates.
How it sits against the full-time average
The national full-time adult ordinary-time average, as measured by the ABS Average Weekly Earnings for May 2026, is $2,083.70 per week or about $108,352 per year. That means the minimum wage is roughly 48% of the full-time average. In other words, a person earning the minimum wage takes home about half of what the typical full-time worker earns.
For context, the full-time median salary (ABS Employee Earnings, August 2025) is $90,532 per year, and the all-employees median (including part-time and casual) is $74,100. The minimum wage sits well below both medians, reflecting its role as a safety net rather than a representative wage.
State-by-state comparison
Full-time average earnings vary across states and territories. The minimum wage of $52,255 is lower than every state average:
- New South Wales: $109,658
- Victoria: $106,137
- Queensland: $106,064
- South Australia: $102,450
- Western Australia: $115,825
- Tasmania: $96,008
- Northern Territory: $103,173
- Australian Capital Territory: $119,090
Even in Tasmania, the state with the lowest full-time average ($96,008), the minimum wage is about 54% of that figure. This gap highlights how the minimum wage is designed as a baseline, not a living wage benchmark.
Who is covered by the minimum wage?
The national minimum wage applies to employees who are not covered by an award or registered agreement. Most workers in Australia are covered by awards, which typically set higher minimum rates. From 1 July 2026, award minimums increased by 4.75%, so many award-reliant workers earn more than the national minimum wage. The Fair Work Commission reviews both the national minimum wage and award rates annually.
Tax and take-home pay
While the minimum wage is a gross figure, tax and the Medicare levy reduce take-home pay. For the 2026–27 income year, the ATO tax rates are:
- Nil on the first $18,200
- 15% on income from $18,201 to $45,000
- 30% on income from $45,001 to $135,000
- 37% on income from $135,001 to $190,000
- 45% on income above $190,000
Plus a 2% Medicare levy (with possible reductions for low-income earners). A full-time minimum wage earner on $52,255 would fall into the 30% bracket for part of their income, but after the tax-free threshold and low-income offsets, the effective tax rate is lower. The ATO provides calculators for precise estimates.
How the figures are set
The national minimum wage is determined by Fair Work after an annual review that considers economic conditions, living standards, and the needs of low-paid workers. The ABS provides earnings data like Average Weekly Earnings and Employee Earnings, which inform the debate but are not used to set the wage directly. The ATO administers tax but has no role in wage setting.
For more detail on how earnings data is collected and used, see How the figures are set. To see where your own salary sits relative to the full-time average, Place a salary on the line.
Key distinctions
It's important not to confuse the minimum wage with averages or medians. The full-time average ($108,352) is the mean of all full-time adult ordinary-time earnings. The full-time median ($90,532) is the middle point: half of full-time workers earn more, half less. The all-employees median ($74,100) includes part-time and casual workers. The minimum wage ($52,255) is the legal floor. Each serves a different purpose in understanding pay in Australia.
Why the gap matters
The gap between the minimum wage and the full-time average reflects the structure of the labour market. Many minimum wage workers are in retail, hospitality, or care roles, often part-time or casual. The full-time average is skewed higher by professionals, managers, and industries like mining and finance. Understanding where the minimum wage sits helps readers gauge the cost of living and the adequacy of the safety net.
If you're comparing your own pay, remember that the minimum wage is a starting point. Most employees earn more under awards or agreements. For a personalised comparison, use the site's tool to Place a salary on the line and see how it stacks up against the national full-time average.